NAMA has just now issued a statement, the full text of which is
“In conjunction with the arrangements announced today by the Minister for Finance for the appointment of a Special Liquidator to IBRC, NAMA has been directed to establish a special purpose vehicle (National Resolution Ltd. – NRL) to acquire a floating charge over certain IBRC assets. These assets are currently used as collateral by IBRC as part of its existing repo arrangements with the Central Bank of Ireland. As consideration for the floating charge, NAMA will issue to the Central Bank new Senior Bonds which are guaranteed by the Minister.
In the period to mid-2013, the Special Liquidator will seek to value and sell the secured underlying assets subject to the floating charge. After the sales process conducted by the Special Liquidator has been completed later in the year, NAMA will acquire the unsold loans in the IBRC loan portfolio in addition to the proceeds of any asset sales conducted by the Special Liquidator during the sales process.
Speaking on behalf of the NAMA Board, Chairman of NAMA, Mr. Frank Daly, stated: “NAMA is fully committed to managing the new responsibilities which have been delegated to it by the Minister and to realising the maximum possible return for the taxpayer from the portfolio that it is due to acquire later in the year”. [statement concludes]
The expectation on here is that NAMA will issue €16bn of new bonds to acquire the after-provision loans at IBRC. And that NAMA will employ about 400 of the 700 IBRC staff (there are already 300 staff of IBRC’s 1,000 working on NAMA loans).
UPDATE: 8th February, 2013. It is understood that NAMA will not be paying a long term economic value premium on its acquisition of loans, and it remains unclear what loans NAMA will be able to bid on, and if it will have a right of matching first refusal.